SHAPE EFFECT

Business Plan
Table Of Contents

PROBLEM STATEMENT ................................................................................................................................................. 3

SOLUTION ...................................................................................................................................................................... 3

BUSINESS DESCRIPTION............................................................................................................................................... 4

Products: ................................................................................................................................................................... 4

Mission Statement: .................................................................................................................................................. 5

Vision Statement: ..................................................................................................................................................... 5

FOUNDER'S PROFILE .................................................................................................................................................... 5

SWOT ANALYSIS ............................................................................................................................................................ 6

Strengths ................................................................................................................................................................... 6

Weaknesses .............................................................................................................................................................. 6

Opportunities............................................................................................................................................................ 6

Threats ....................................................................................................................................................................... 6

MARKET SIZE .................................................................................................................................................................. 7

KEY MARKET INSIGHTS ................................................................................................................................................. 8

MARKET TRENDS ........................................................................................................................................................... 9

MARKET REVENUE....................................................................................................................................................... 10

CONSUMER INSIGHTS ................................................................................................................................................ 11

TARGET MARKET ......................................................................................................................................................... 12

MARKETING OBJECTIVES ............................................................................................................................................ 12

MARKETING STRATEGIES............................................................................................................................................ 13

Content Marketing ................................................................................................................................................. 13

Social Media Presence ........................................................................................................................................... 13

Influencer Marketing.............................................................................................................................................. 13

Word of Mouth Marketing..................................................................................................................................... 14

Events and Experiences ......................................................................................................................................... 14

COMPETITOR ANALYSIS ............................................................................................................................................. 15

Fabulous Shape ...................................................................................................................................................... 15

Herbalife Nutrition ................................................................................................................................................. 15

PROJECTED SALES ....................................................................................................................................................... 16

Monthly Sales Forecasts ........................................................................................................................................ 16

Yearly Sales Forecasts ............................................................................................................................................ 17

 PROBLEM STATEMENT

An APA Stress in America survey conducted in late February 2021 found 42% of
U.S. adults reported undesired weight gain since the start of the pandemic, with
an average gain of 29 pounds. More than two-third of adults and almost one-third
of children and adolescents in the United States are overweight or obese. Forty-
five percent of overweight Americans and 67% of those who are obese are trying
to lose weight. Health experts agree that making lifestyle changes—including
following a healthy dietary pattern, reducing caloric intake, and engaging in
physical activity—is the basis for achieving long-term weight loss. But because
making diet and lifestyle changes can be difficult, many people turn to look for
alternative options like surgery, keto diets and other no so effective methods
regardless of the cost and health risks associated. Most of society continues to fall
victim to the temporary results of these surgeries or procedures without thinking
of the long-term side effects on their overall health.

SOLUTION

A fit and healthy body has always been one of the top priorities of people. But
unfortunately, many people fail to get them because of their lifestyle and inability
to control their eating habits. Sometimes people had to go through some major
challenges to shape their body fit and healthy. We realized how much people
dream of having or maintaining their dream body shape but think the only way to
achieve that is by going under the knife. That aside, not everyone can afford the
payment(s) to undergo such procedures, including the risk involved may not be
worth it.

Hence, we seek to provide a better, safer, and affordable alternative with the
highest percent efficiency and zero side effects. The Shape Effect developed a
special weight loss supplement based on safe and natural components that have
been shown to provide excellent results with no side effects. The outcomes aren't
miraculous, but you can feel your body going through it. We make sure that these
supplements are accessible to everyone and that they may be used by regular
people looking to improve their weight control.
Our solution is what is needed to bridge the gap between amazing results and the
danger men and women suffer as a result of cosmetic procedures, just like our
tagline says: No surgery, just us.

BUSINESS DESCRIPTION

Approximately 15% of U.S. adults have used a weight-loss dietary supplement at

some point in their lives; more women report use (21%) than men (10%).
Americans spend about $2.1 billion a year on weight-loss dietary supplements.
Understanding the market potential and space in the industry Shape Effect is
about to disrupt the market by providing better, safe and affordable weight loss
supplements. Shape Effect is a company/ team that was founded with a cause to
save individuals in the community, most especially women, from the depressing
and unhealthy impact of excess weight gain. It ensures that their supplements are
available for all and could be accessed by the average individuals in the population
who seek a healthier weight management regimen.

Products:

• 2 Bottle Combo (Activated Burner Combo) Est. Price: $30.00 to $49.00

• 3 Bottle Combo (Strong House Body Curver) Est. Price: $60.00 to $99.00

• 4 Bottle Combo (Superior Goddess & God Shape Combo) Est. Price:

$120.00 to $149.00
Mission Statement:

The Shape Effect team is on a journey to change lives by providing our community
with the solution they need to gain confidence in their bodies without jeopardizing
their health.

To encourage and maintain better health in the future by providing affordable,

healthy, and innovative supplements that will play an important role in building a
strong mind and body. Now!

Vision Statement:

By raising awareness of the potency and safety of our products in comparison to

alternative forms of weight management that many in the world have chosen to
consider for their health, bodies, and wellness, we hope to maintain healthy
weight management supplements while also providing education and insight
regarding adequate wellbeing.

FOUNDER'S PROFILE

Ujuchris Okereh, CEO of The Shape Effect, didn't just start the brand; he
launched the brand due to the experience he has had in the past and would like
to mitigate the reoccurrence of such in the world.

Losing loved ones to the dreadful effect of weight gain, he saw the need to prevent
others from going through the same pain as him. He initiated his journey on
effective weight control and management by evaluating the relativity of the
world's population and weight gain. Realizing a significant percentage of people
lose their lives to illnesses like diabetes, heart failure, high blood pressure, and
many more - All these are escalated by excess fat in the body.

With his five-year background experience in the IT field as a Scrum Master and
seven years in company management, Ujuchris is a creative thinker, a problem
solver, and an algorithm creator, compiling all these expertise in starting the
brand. The Shape Effect came from his hard work and determination to save more
people, as he could have probably been able to save his loved ones in the past if
the drugs available in the market worked as they should.

He believes it's time to empower others to manage their body weight without
having to undergo any surgical procedures.

SWOT ANALYSIS

Strengths

• Outstanding product offerings of high quality, healthy and affordable

• Product portfolio decided by scientific, data backed analysis of past
purchase patterns, consumer preferences etc.
• Sustainable business model
• Professional and well-experienced management team

Weaknesses

• Capital intensive and marketing costs

• Poor consumer awareness

Opportunities

• Increasing market growth and size

• Growth in health concerns and fitness
• Increasing number of health-conscious people

Threats

• Lots of competitors and similar available products

• Threat of alternative options
 MARKET SIZE

The North America dietary supplements market size was valued at USD 50,118.6
million in 2020 and is expected to grow at a compound annual growth rate (CAGR)
of 5.6 % from 2021 to 2028. The increasing consumer awareness regarding
personal health and wellbeing is one of the key drivers of the market.
Furthermore, growing demand for preventive health products to lead healthy &
disease-free life and rising number of fitness centers, health clubs, & gymnasiums
are expected to drive the market over the forecast period.

The global weight loss supplements market size was valued at USD 33.4 billion in
2020 and is projected to expand at a compound annual growth rate (CAGR) of
16.6% from 2021 to 2028. The rising cases of obesity and related health ailments,
such as cardiovascular diseases (CVDs), diabetes, and hypertension, are expected
to drive product demand. As per the World Health Organization estimates in June
2021, approximately 2.8 million individuals die every year due to overweight or
obesity. In addition, as of 2021, WHO estimates approximately 115 million
individuals are suffering from obesity-related ailments in developing countries.
Therefore, the growing dependency on weight loss supplements to maintain
normal body weight is expected to propel market growth. Moreover, increasing
disposable income and growing concerns about maintaining a healthy lifestyle are
expected to drive market growth.

According to data published by William Reed Business Media Ltd. in 2016,

approximately 79% of Europeans are willing to pay more for products, such as
organic weight loss supplements, owing to greater interest in improving overall
wellbeing. In addition, an increase in the working class and the middle-class
population is anticipated to boost the product demand in the coming years. It is
estimated that in India, the average household income will triple over the next
two decades, and the country is expected to have the world’s fifth-largest
consumer economy by 2025.

KEY MARKET INSIGHTS

• The global market size is anticipated to be valued at USD 116.6 billion by

2028 due to the growing cases of obesity across the globe
• Based on type, the powder segment dominated the market due to higher
bioavailability and regulated dosage of powders to support weight control
and physical activity
• The vitamins & minerals ingredient segment led the market due to rising
awareness regarding the health benefits associated with these
supplements
• In the end-user segment, the age group of 18-40 years old dominated the
market due to growing health consciousness
• Offline was the largest distribution channel segment in 2020 due to the high
consumer base for retail pharmacies and department stores
• The market is primarily driven by factors such as rising incidence of obesity
and chronic diseases, rising awareness about nutrition and healthy
lifestyles, an increasing number of fitness centers, and rising disposable
income across the region.
• However, the major factor restraining the growth of the market is the high
cost of weight management products, owing to the additional processing
required for low-calorie products and additional nutrients, such as vitamins
and minerals.
 MARKET TRENDS

Rise in Obesity & Overweight Resulting into Increased Bariatric Surgeries

Across the Region

Obesity in the North America region has been growing in epidemic proportions
for the last few decades. Over 4 out of every 10 American adults are obese,
according to a government study by the CDC. Bariatric surgeries/weight loss
surgeries were formerly considered as the last option for weight loss after dieting,
exercise, and other medically prescribed programs had failed.

However, these surgeries are now increasingly being accepted by the medical
community as an effective and long-lasting alternative to other weight loss
techniques. This factor, coupled with the rapidly increasing obesity rates, has
resulted in a rapid increase in the number of bariatric surgeries across the globe.
For instance, according to the American Society for Metabolic and Bariatric
Surgery (ASMBS), the total number of bariatric surgeries performed in the US
increased to 196,000 in 2015 from 158,000 in 2011.

United States to Drive the Regional Market

The United States has been dominating the weight management products market
in the North America region, owing to the rising prevalence of overweight and
obesity in the country, along with rising awareness regarding personal well-being,
and increasing disposable income. The consumers in the region mostly prefer
herbal and non-herbal weight managing products such as slimming teas and
calorie-restricted meal replacements, like shakes, powders, soup, and bars among
other products. Despite the backslash against weight loss supplements, the meal
replacement category recorded significant growth, as these products are
considered as healthier alternatives to over-the-counter obesity and weight loss
supplements.

Also, these meal replacement products are healthier and safer to follow, as they
provide less caloric density, along with providing the essential nutrients, vitamins,
and minerals, which are necessary for healthy weight loss and diet. Along with
increasing awareness about nutrition and healthy lifestyles, the growth in the
number of fitness centers in the country also supports the growth of the weight
loss and weight management market, as these centers are involved in the
endorsement of weight loss products among their respective consumers.

MARKET REVENUE

Revenue from vitamin and nutritional supplement production reached nearly 31

billion dollars in the United States in 2018 and the industry is set to add over a
billion more in revenue in 2019. With consumers’ interest in health and wellness
growing, so too is the market for supplements that support this lifestyle. When
asked why they used dietary supplements, most consumers answered that they
did so for overall health and wellness benefits. Growth of the supplement industry
is no surprise when one considers the scale of its penetration into the lives of
consumers. In a survey conducted in 2018, at least 70 percent of the population
in every age group stated that they used dietary supplements, with usage
increasing with age. Since 2007, household spending on nonprescription vitamins
has almost doubled from an annual average of 46 dollars to nearly 80 dollars.
Mineral supplements, such as calcium and magnesium, are the most in demand,
accounting for over a quarter of sales.

CONSUMER INSIGHTS

In 2020, the 18 to 40 years end-user segment dominated the market with a

revenue share of 61.6% owing to rapidly growing cases of obesity in this
population segment. The growing need to maintain normal body weight and
optimum physique is expected to drive the growth of this segment. Rising
disposable income and increasing participation in physical fitness activities are
expected to positively impact the growth of the segment. The growing awareness
levels of the benefits and functioning of weight loss supplements are expected to
drive the segment. As per the National Institutes of Health estimates in 2021,
approximately 15% of the U.S. adults have claimed to have consumed weight-loss
dietary supplements in their lifetime, with higher consumption recorded in female
adults compared to males. The growing demand for appetite suppressants, fat
burners, and craving curbers are driving the segment growth.

However, the under 18 years end-users’ segment is anticipated to record the

fastest CAGR over the forecast period. Rising awareness levels among the
consumers under this age group about the product benefits will drive the
segment. The growth in disposable income in this segment is also expected to
have a positive impact on the segment growth.

TARGET MARKET

A target customer is an individual that's most likely to buy our product. And it's a
subset of the broader target market. The target customers of our weight loss
supplements can be estimated as female and the age group are about 18-34
according to the above findings. The educational level of the target customers is
high school graduate or above, and they are middle class or above. It is because
professional/executive/traders and women from high-income groups are more
likely to use drugs to improve their weight condition. The reasons are that they do
not have much time to do exercise, and they have the ability to choose better
option available.

MARKETING OBJECTIVES

• Increase visibility and awareness of our new dietary supplement products both
internally and within our community

• Drive internal support for the product. Administrators will continue funding it
and advocating its use.

• Grow reputation through media coverage, testimonials, and benefit stories.

 MARKETING STRATEGIES

Content Marketing

Putting out helpful and informative content that relates to supplement

components, its benefits and current market trends towards Shape Effect attracts

website visitors. Content marketing traditionally includes blogging, but videos and

podcasts also count as useful material that leads customers to the website. So,

using brand aligned contents that define Shape Effetcs and our entire business,

we will attract not only customers but also the interested potential users.

Social Media Presence

Social media is the most important tool now a days to leverage any marketing

strategies. People try out such dietary supplements and share their experiences,

thoughts and outcomes through social media. It’s the most convenient place to

connect with the customers. So, in order to achieving the best result with

marketing, it’s mandatory to build up our social media presence. Therefore, we

will regularly maintain our social medias i.e: Facebook, Instagram, Twitter to share

our contents, customer reviews, brand personalities to connect with our

customers.

Influencer Marketing

Now that our social media platforms are established, we will grow our reach

through influencer marketing. Influencers are people in your industry, geography,

or niche demographic with large online followings. For a supplement selling

company, influencers could come in all forms: food bloggers, local leaders, news
anchors, even a well-known student athlete. Being something unique with niche

market, people mostly trust when they see their aspired people are drinking them.

So, here in our case, it would be our most effective marketing strategy.

Word of Mouth Marketing

It might feel like all marketing is digital now, but there is no substitution for good,

old-fashioned networking. Whether having any new product in a small town or

large city, it’s important to get to know the community. Not only will it help us to

spread the word about our business, but it will also grant us access to small

business resources like great contractors, local events, or skilled employees.

Events and Experiences

We are not just selling supplements; we’re creating an experience every time a

new customer walks into our business. So, focusing on that we will understand

the lifestyle of our customers, and create events and experiences that tie

seamlessly into their day. We will be hosting or organizing events like tea pairings,

corporate networking events, live music events, study & yoga sessions for people

and engagement sessions to engage our customers more.

 COMPETITOR ANALYSIS

Fabulous Shape

Fabulous Shape is an international website that trades in weight loss

supplements. The site aims to help people get into shape without spending hours
in gyms and spending thousands of dollars in the surgery. Moreover, the site has
introduced these supplements on its official website. In addition, it also claims
that there are no side effects of taking these supplements since it is made using
natural components.

Moreover, Fabulous Shape provides its products on sale where customers will get
a combo of three supplements worth $180 at just $130.

Herbalife Nutrition

Since 1980, Herbalife Nutrition have been on a mission to improve nutritional

habits around the world with great-tasting, science-backed nutrition products that
help people get the right balance of healthy nutrition. Every day, millions of
Herbalife Nutrition shakes are consumed around the world. products are
available exclusively through educated and trained independent Herbalife
Nutrition distributors who provide comprehensive and personalized solutions to
their customers’ nutrition and wellness goals.

Herbalife Nutrition operates in more than 90 countries with over 10,000

employees around the world.
 PROJECTED SALES

Monthly Sales Forecasts

Total Unit Avg. Price Per Total

Products Jan-23 Jun-23 Dec-23
Sold Unit Sales

2 Bottle
450 473 520 1442 $40 $57,690
Combo

3 Bottle
300 315 347 962 $75 $72,113
Combo

4 Bottle
270 284 312 865 $135 $116,822
Combo

*Sales growth will be 5% in first half and 10% in the second half of the year.

Monthly Sales Growth

600

500

400

300

200

100

0
2 Bottle Combo 3 Bottle Combo 4 Bottle Combo

Jan-23 Jun-23 Dec-23

Yearly Sales Forecasts

Products Year 1 Year 2 Year 3

2 Bottle Combo $57,690 $63,459 $72,978

3 Bottle Combo $72,113 $79,324 $91,222

4 Bottle Combo $116,822 $128,504 $147,780

Yearly Sales
$160,000

$140,000

$120,000

$100,000

$80,000

$60,000

$40,000

$20,000

$0
Year 1 Year 2 Year 3

2 Bottle Combo 3 Bottle Combo 4 Bottle Combo